MGMT 464 Honoree Exam 3
Some of the methods used to attack a competitor's position include all of the following EXCEPT _______________ A. Increased retaliation B. Flanking maneuver C. Raise structural barriers D. Bypass attack E. Encirclement
A. Increased retaliation
Which of the following provides managers a unique interview to accommodate the specific employment needs to find a suitable employee to fill a position at a large organization?
Assessment center
__________________ is the method an organization can use to allocate indirect and fixed costs to products that it bases from value-added activities in the workplace?
Activity-based costing (ABC)
The three most widely used techniques for international performance evaluation are
ROI, historical comparisons, and budget analyses
The three common categories of standards for products and services are
Safety/environmental; energy efficiency; and testing procedures
Which of the following methods in an organization excludes developmental expenses as a separate expense from the current operational expenses?
Strategic-funds method
In which essential element of TQM does the organization focus on monitoring the operations on a consistent basis to enhance products and services in the workplace?
Continuous improvement of products and services
Which of the following downsizing guidelines is useful to an organization that chooses to implement an outsourcing strategy rather than a vertical integration strategy in the workplace?
Contract out work that others can do cheaper.
The guideline for proper control where an organization should monitor 20% of the factors that determine 80% of the results in the workplace is ____________________________?
Control should involve only the minimum amount of information needed to give a reliable picture of events.
Which of the following guidelines for proper control involve activities or results that the organization did not include in a predetermined range that cause the organization to take action?
Controls should aim at pinpointing exceptions
Which of the following guidelines for proper control should an organization use to monitor or measure the steering control factors that influence performance in the organization?
Controls should be timely so that corrective action can be taken before it is too late.
_____________________ is a guideline for proper control used to help an organization achieve cooperation between divisions when the organization implements a form of qualitative or quantitative measures?
Controls should monitor only meaningful activities and results, regardless of measurement difficulty
Stealth expatriates are those managers or workers who are _____________________
Cross-border commuters (or accidental expatriate) who go on many business trips and temporary assignments around the world
Existing standards for products and services are drafted by different bodies for different countries. All of the following identify correctly the bodies and countries EXCEPT ___________________ A. BSI in the United Kingdom B. AFNOR in France C. CSA in Canada D. IEC in the United States E. DIN in Germany
D. IEC in the United States
Key drivers for strategic fit between international strategic alliance partners include all of the following EXCEPT ________ A. Joint activities must have added value for customers and the partners. B. Partners must agree on fundamental values and have a shared vision about for joint value creation. C. Partners contribute key strengths but protect core competencies D. Partners must be mutually independent for achieving clear and realistic objectives. E. Alliance strategy must be derived from business, corporate, and functional strategy.
D. Partners must be mutually independent for achieving clear and realistic objectives.
The amount of money an organization can generate before the cost of finances and taxes in an organization is ______________?
Operating cash flow
Which of the following describes how an organization grows, develops, and declines in the marketplace?
Organizational life cycle
Which of the following is a control that focuses on the actual performance results in an organization?
Output controls
In which step of the Six Sigma process does the organization seek to discover the exact current performance of a production line or manufacturing process in the organization?
Step II: Measure
In which step of the Six Sigma process does an organization investigate the process to determine what is wrong with the production or the manufacturing process?
Step III: Analyze
All of the following statements related to a global MNC are correct EXCEPT ___________ A. a global MNC needs loose controls over its foreign units B. the key operational decisions for global MNC must be centralized C. a global MNC do not often make the entire product in the country in which it is sold. D. a global MNC must consider competition in the global arena E. a global MNC needs tight controls over its foreign units
A. a global MNC needs loose controls over its foreign units
All of the following are true about strategies to hire and train employees EXCEPT ________. A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace B. employee selection and training are important to the success of a new strategy in an organization C. training is an important consideration in a differentiation strategy that emphasizes quality or customer service in an organization D. training is important when an organization implements a retrenchment strategy E. an organization might discover that it needs to hire different individuals and groups or retrain current employees to meet organizational goals and objectives
A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace
A set of recommendations to improve the entire expatriation process include all of the following EXCEPT ______________________ A. assigning sponsors and mentors in home country and not in new country B. designing a plan for repatriation C. developing a means of maintaining open and frequent communications D. having a compelling reason for sending a current employee to a new country E. choosing individuals who are open to the assignment
A. assigning sponsors and mentors in home country and not in new country
All of the following problems occur when an organization implements a strategic change EXCEPT ________. A. involved employees had sufficient capabilities to perform a job function B. unanticipated major problems arose C. uncontrollable external environmental factors created problems D. lower-level employees were inadequately trained E. activities were ineffectively coordinated
A. involved employees had sufficient capabilities to perform a job function
Facts that should be considered before implementing strategy for international employment includes all of the following EXCEPT that ______________ A. of those employees who stayed for the duration of their assignment performed better than expected B. nearly 80% of larger companies send some of their employees as expats C. three-quarters of companies report spending two to three times an expat's annual salary on a typical assignment D. about half of the managers return from abroad assignments due to job dissatisfaction. E. between 20% and 45% of expatriate assignments are failures
A. of those employees who stayed for the duration of their assignment performed better than expected
In which essential ingredient of TQM can the organization quantify operational functions and ensure that employees can interpret the data?
Accurate measurement of every critical variable in a company's operations
A relatively quick way to move into an international area is through
Acquisitions (purchasing another company already operating in that area)
Which of the following is useful because its purpose can reveal what can occur, by whom, the specific time frame, and expected results of a strategy in an organization?
Action plan
In which essential ingredient in TQM is to focus on how the organization can please the consumer?
An intense focus on customer satisfaction
The MBO process does not involve
An intense focus on customer satisfaction objectives
All of the following statements describe what a multinational corporation (MNC) is EXCEPT: A. MNC manages its worldwide operations as if they are totally interconnected. B. MNC is a company that engages in any combination of activities from exporting/importing to full-scale manufacturing, in foreign countries. C. MNC faces the dual challenge of achieving scale economies through standardization while responding to local customer differences. D. MNC is a highly developed international company with deep involvement throughout the world, plus a worldwide perspective in its management and decision making. E. MNC has strategic alliances that may complement or even substitute for an internal functional activity.
B. MNC is a company that engages in any combination of activities from exporting/importing to full-scale manufacturing, in foreign countries.
TQM's essential ingredients include all of the following EXCEPT ___________________. A. new work relationships based on trust and teamwork B. establishing and communicating organizational objectives C. an intense focus on customer satisfaction D. continuous improvement of products and services E. accurate measurement of every critical variable in a company's operations
B. establishing and communicating organizational objectives
All of the following are forms of synergy that occur in an organization EXCEPT ______ A. pooled negotiating power B. individualized strategies C. new business creation D. shared tangible resources E. shared know-how
B. individualized strategies
The action plan to develop a new advertising program should include all of the following EXCEPT _________ A. Expected financial and physical consequences for each action B. Specific actions to be taken for making the program operational C. Select a program to implement a particular strategy D. Dates to begin and end each action E. Contingency plans F. Person (identified by name and title) responsible for carrying out each other G. Person responsible for monitoring the timeliness and effectiveness of each action
C. Select a program to implement a particular strategy
Which of the following is NOT a long-term reversal in organizational growth known as a "stall point category"? A. Core business abandoned B. Premium position backfires C. Strategic implementation D. Short-run talent and capabilities E. Break-down in innovation management
C. Strategic implementation
All of the following assessments are correct statements about the stages of international development EXCEPT ________ A. developments in information technology change the way international organizations operate in the marketplace B. an organization can be at different stages of international development at the same time, with a different product in a different market at a different level C. an international company always follows the five steps of international development to initiate the export process out of a country D. a firm that is considered an MNC in Stage V of international development is considered a regional firm E. an organization that implements the stages of international development might initiate production and sales in many countries without the use of the steps to export products out of a local sales subsidiary
C. an international company always follows the five steps of international development to initiate the export process out of a country
All of the following are true statements about strategy implementation EXCEPT ________. A. although implementation is often considered only after strategy has been formulated, strategic implementation is a key part of strategic management B. strategy implementation is the process that occurs when objectives, strategies, and policies are put into action through the development of programs and tactics, budgets, and procedures in an organization C. an organization that formulates a strategy should never implement the strategy in the organization D. strategy implementation is the sum total of the activities and choices required for the activities and choices required to execution a strategic plan in an organization E. strategy formulation and strategy implementation should thus be considered as two sides of the same coin
C. an organization that formulates a strategy should never implement the strategy in the organization
All of the following are true statements about downsizing strategies EXCEPT ________. A. an organization that implements a successful downsizing strategy experiences strategic reorientation, not only the reduction of employees in the workplace B. downsizing refers to the planned elimination of positions or jobs in an organization C. downsizing might result in more, rather than less, productivity D. downsizing can seriously damage the learning capacity of organizations because creativity drops and it becomes difficult to retain high-performing employees E. downsizing is a result of a retrenchment strategy
C. downsizing might result in more, rather than less, productivity
All of the following are true statements about retrenchment strategies EXCEPT ________ A. all managers should specify the criteria an organization uses when it makes personnel decisions in an organization B. successful downsizing means that an organization has to invest in its remaining employees C. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order D. training is also important when implementing a retrenchment strategy E. if a corporation adopts a retrenchment strategy, however, a large number of individuals and groups lose their jobs
C. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order
A virtual organization is composed of
Collaborations linked by constantly changing networks
Which of the following downsizing guidelines is useful when the organization explains why it plans to downsize operations and what the goal of a downsize strategy is in an organization?
Communicate the reasons for actions.
Which of the following is referred to as a key to the effective management of change?
Communication
The green-field development is a recommended method for international entry when a
Company does not want to purchase another company's problem along with its assets
All of the following are true statements about communication in an international expansion scenario EXCEPT ________. A. in a country that has a high level of uncertainty avoidance, such as Switzerland and Austria, communication should be clear and explicit, and based on facts B. in low-uncertainty-avoidance countries such as Greece or Russia, individuals and groups are not accustomed to structure in communication and they prefer open-ended meetings in the workplace C. communication is the key to the effective management of change in the workplace D. Thai managers feel that 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization E. in countries similar to Thailand that have high levels of power distance, the managers believe that communication should go out of the top and into the bottom of an organization
D. Thai managers feel that 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization
A(n) ________ usually occurs in the organization's current market position as a tactic that is used to shield itself against an attack by a rival organization in the marketplace.
Defensive tactic
In which of the following downsizing guidelines should a manager consider other staffing alternatives because the organization cannot transfer employees and there are no other employment positions available to offer employees in the workplace?
Develop value-added jobs to balance out job elimination.
The third and final phase of matrix development involves a true
Dual-authority structure
Executive managers who implement succession plans utilize best practices that include all of the following EXCEPT ________. A. executive managers look outside the organization to recruit a new CEO candidate only if there are no internal candidates to fill the position internally B. encouraging boards to help the CEO create a succession plan C. executive managers compare the internal candidates in a succession plan to an outside candidate to ensure the candidates contain pertinent skills and abilities D. executive managers can provide financial incentives to motivate employees E. executive characteristics never influence strategic outcomes at an organization
E. executive characteristics never influence strategic outcomes at an organization
All of the following are forms of synergy that occur in an organization EXCEPT ________ A. shared tangible resources B. shared know-how C. coordinated strategies D. pooled negotiating power E. old business creation
E. old business creation
ROI can cause problems when it is applied to international operations due to all of the following reasons EXCEPT ___________________________ A. inflation rates B. transfer pricing C. foreign currencies D. accounting systems E. stealth expatriates
E. stealth expatriates
Which of the following guidelines an organization uses to downsize (downsizing) operations is useful when the organization should stop functions that fail to add value in an organization?
Eliminate unnecessary work instead of making across-the-board cuts.
_______________ is a guideline for proper control that results in goal displacement when performance outcomes are not optimum?
Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.
In the __________ center resources are measured in dollars without consideration to the service and product costs?
Expense
A good way to minimize risk and experiment with a specific product is
Exporting
One of the common mistakes resulting in early returning home of the expatriated employees is
Failing to educate the person about the customs and values in other countries
Which of the following represents the first company to manufacture and sell a new product or service in the marketplace?
First mover
The amount of money a new owner can take out of the firm without harming the business is
Free cash flow
Which of the following offensive methods does an organization implement when the organization mimics a competitor's pricing, promotion, and distribution channel strategies to gain a competitive advantage in an industry?
Frontal assault
Instead of a continual and extensive resource-expensive attack on a competitor, a firm or business may choose to "hit and run." This tactic is referred to as
Guerrilla warfare
Which of the following is an offensive method an organization can implement when it initiates small, intermittent assaults on competitors in different market segments in the external environment? A "hit and run"
Guerrilla warfare
To deal with different accounting systems throughout the world, the London-based International Accounting Standards developed the
International Financial Reporting Standards (IFRS)
Which of the following traits is important when staffing managerial positions at MNCs regardless of their country of origin or host country assignment?
International orientation
______________ is a steering control that is a retailer's cost of goods sold divided by the average value of its inventories?
Inventory turnover ratio
Which of the following downsizing guidelines is useful when the organization understands that employees perform different job functions after it downsizes and the organization drafts new job specifications, employee standards, appraisal techniques, and compensation packages.
Invest in the remaining employees.
The _________ center measures performance in terms of the difference between its resources and its products in the workplace?
Investment
Which of the following new job design techniques permits an employee to perform a variety of jobs in the workplace?
Job rotation
Which of the following emphasizes program usage to ensure employees align interests and attitudes with new strategies in an organization?
Leading
What is the difference between licensing and franchising?
Licensing firm grants rights to another firm in the host country to produce and/or sell a product. Franchiser firm grants rights to another company to open a retail store using the franchiser's name and operating system
Tailored to match measurements with rewards, the __________ compensates managers when the objectives are set over multiple years in the workplace?
Long-term evaluation method
Which of the following techniques encourage participative decision making through shared goal setting at all organizational levels and bases its performance assessments on stated objectives?
Management by objective (MBO)
Which of the following terms describes an industry that occurs when each country's industry is a separate entity compared to the same industry in another country?
Multidomestic
In which essential ingredient of TQM has a focus on empowerment because it provides the employees a wide latitude on their journey to achieve organizational goals?
New work relationships based on trust and teamwork
Coined by Peter Drucker, the term "production sharing" is commonly referred to as
Outsourcing (- process in which resources are purchased from others through long-term contracts instead of being made within the company) (Production Sharing refers to the process of combining the higher labor skills and technology available in developed countries with the lower-cost labor available in developing countries)
Which of the following downsizing guidelines represents why the organization should NOT simply eliminate all expenses when it implements a downsizing strategy but instead explains why the organization should continue to hire, grow, and develop operations when the organization downsizes its operations?
Plan for long-run efficiencies.
Which of the following promotes centralized-decision making and enables a company to introduce and manage similar products around the world?
Product-group structure
The responsibility center where the performance in an organization is measured in terms of the difference between revenues and expenditures is the ___________ center?
Profit
___________ is known as a technology that uses electronic tags to improve supply chain efficiency in the workplace?
Radio frequency identification (RFID)
Which of the following is the redesign of a business process to increase profitability, improve service, and manage time in an organization?
Reengineering
The result of dividing net income before taxes by the total amount invested in the organization is ______________?
Return on investment (ROI)
Which of the following responsibility centers are profits NOT considered because sales departments have very limited influence over the cost of products?
Revenue center
Which of the following focuses on the selection and use of employees in an organization?
Staffing
In which stage of international development is the organization primarily a domestic company that exports its products through local distributors and dealers in a foreign country?
Stage I
In which stage of international development can the organization establish its own sales company to control marketing and to eliminate the middlemen in the organization?
Stage II
In which stage of international development can the organization now establish its manufacturing facilities, sales offices, and service offices in a key country?
Stage III
In which stage of international development does the organization typically establish a local operating division or company in the host country?
Stage IV (4)
In which stage of international development is the organization a global industry that denationalizes its operations when it establishes operations in a key country(s)?
Stage V (5)
In which stage of the organizational life cycle is the likely structure functional management?
Stage II: Growth
In which stage of the organizational life cycle is the popular strategy horizontal and vertical growth?
Stage II: Growth
In which stage of the organizational life cycle is the dismemberment of structure?
Stage V: Death
The manufacturing facility compute costs for its operations based on historical data in the ___________ center?
Standard cost
Which of the following steps in the benchmarking process can the strategic manager identify the area or process that has the potential to gain a competitive advantage in the marketplace?
Step I: Identify the area or process to be examined at the organization.
The strategic manager identifies the area or process that has the potential to gain a competitive advantage in the marketplace in __________________ of the benchmark process.
Step IV: Calculate the differences among the organization's performance measurements to compare those differences in an organization against the performance of the primary competitors in the marketplace to determine where and why those differences exist between organizations in the marketplace.
In ________________________, the organization develops strategies to change existing endeavors to enhance the organizational performance in the workplace?
Step V: Develop tactical programs to close performance gaps in the organization.
In which step of the Six Sigma process does an organization develop controls to monitor and eliminate defects that occur on the production line?
Step V: Establish
_____________________ in the benchmarking process the organization implements new endeavors and compares performance to primary competitors in the marketplace?
Step VI: Implement the programs and then compare the resulting new measurements with those results of primary competitors in the marketplace.
______________ occurs when an organization reviews each responsibility center or functional unit as a separate entity from the organization?
Suboptimization
What happens at Stage 2 during the process of international development?
Success at the earlier stage leads to establishment of a sales company with offices in the foreign countries
One of the fastest growing MNCs in the recent years who tries to hire managers with local experience is
Uber
Which of the following represents an organization that eliminates its in-house business functions and outsources many business activities in the organization?
Virtual organization
Tailored to match measurements with rewards, the _____________ measures and rewards the performance of top SBUs managers when performance factors vary in the individual SBUs in an organization?
Weighted-factor method